The Nigerian National Petroleum Corporation (NNPC) recently published names of shortlisted local and international trading and downstream oil firms for the highly sought-after arrangements to exchange crude oil for imported fuel.
NNPC’s crude swap deals, known as Direct Sale-Direct Purchase Agreements (DSDP), were previously referred to as offshore crude oil processing agreements (OPAs) and crude-for-products exchange arrangements.
The corporation said in a statement yesterday by its Group General Manager, Public Affairs, Mr Ndu Ughamadu, that the 2019/2020 DSDP programme would be executed with utmost transparency and accountability.
A total of 15 groupings, with at least 34 companies in total, were successful.
According to NNPC, the shortlisted companies comprised, BP Oil International Limited/AYM Shafa Limited; Vitol SA/Calson-Hyson; TOTSA, Total Oil Trading SA/Total Nigeria Plc; Gunvor International BV/AY Maikifi Oil and Gas Limited; Trafigura PTE Limited/AA Rano Nigeria Limited; and CEPSA SA/Oando Plc.
The other shortlisted firms are Mocoh SA/Mocoh Nigeria Limited; Litasco SA/Brittania-U Nigeria Limited/Freepoint Commodities; MRS Oil and Gas Company Limited; Sahara Energy Resource Limited, Bono Energy Limited/Eterna Plc/ Arkleen Oil and Gas Limited/Amazon Energy Resource; Matrix Energy Limited/Petratlantic Energy Limited/UTM Offshore Limited/Levene Energy Development Limited; Mercuria Energy Trading SA/ Barbados Oil and Gas Services Limited/Rainoil Limited/Petrogas Energy; Asian Oil and Gas PTE Limited/Eyrie Energy Limited/Masters Energy and Gas Limited/Casiva Limited; and NNPC’s subsidiary trading arm, Duke Oil Company Incorporated.
Under the deals, the NNPC supplies crude oil to selected local and international oil traders and refineries in exchange for petrol and diesel.
Although NNPC did not disclose the volume of crude oil for the programme, the corporation usually puts out as much as the 445,000 barrels per day (bd) oil allocated to its refineries in Kaduna, Warri and Port Harcourt daily to be handled under the deal.
It, however, noted that the contract would last from October 1, 2019, to September 30, 2020, adding that the beneficiary companies were reputable and experienced to undertake it.
“In line with its avowed commitment to transparency and accountability in all its activities as committed by the new Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Mallam Mele Kyari, the national oil company has announced winners of its 2019/2020 Direct Sale of Crude Oil and Direct Purchase of Petroleum Products (DSDP) arrangement,” said the statement.
It added that from the completion of the 2019/2020 DSDP tender, “15 consortia/companies made up of reputable and experienced international companies and Nigerian downstream companies emerged successful to undertake the 2019/2020 DSDP arrangement.”
NNPC stated that the tender process comprised technical and commercial bid submission respectively, evaluation and shortlisting, then commercial negotiations with prequalified companies and engagement of the successful consortia/companies.
“Under the DSDP arrangement, the underlisted fifteen (15) consortia/companies shall over the contract period, off-take crude oil and in return, deliver corresponding petroleum products of equivalent value to NNPC, subject to the terms of the agreement,” it added.
The corporation said Kyari had promised to open NNPC books to public scrutiny, adding that as a publicly owned company, Nigerians deserve to know about its operations.
NNPC had in May 2017 signed the deals with local and international traders to exchange about 330,000 barrels per day (BPD) of crude oil for imported petrol and diesel as part of measures to sustain the supply of petroleum products nationwide.
However, the deals, which expired by the end of July 2018, were extended until the end of 2018.
The state-run oil firm later extended the $6 billion oil swap deals by another six months to June 2019.